The global collapse in share prices has hit the main property market PLCs this morning, except for Hunters.
LSL Property Services, which owns Reeds Rains, Marsh & Parsons and Your Move, has been hit the hardest. Its shares had dropped by 7.55% by lunchtime today while almost all the others saw their share price cut too.
Countrywide’s already much-reduced share price dropped by 5.1% and Belvoir by 3.8% while all the other saw reductions of approximately 2% including ZPG, Rightmove, Savills, Purplebricks and the Property Franchise Group.
These share price drops reflect the wider global collapse in confidence among investors, and although the FTSE 100 Index has been drifting downwards over the past five days, the biggest drop took place this morning when it saw a 3.5% drop at the opening of trading, mirroring similar drops in France, Germany and other European markets.
The drops in Europe follow worse falls in Japan and the US, where their key stock market indicators fell by 4.7% and 4.6% respectively.
These drops were in turn triggered by improved trading conditions in the US, which led to speculation about potential higher inflation and therefore interest rates across the globe.
But the global share price turmoil may be temporary – The Guardian reported today that sentiment in the City was that this is a correction after huge share price gains over the past 12 months, and that market would eventually return to normal, rather than being a potential ‘crash’.